Second quarter 2020 leasing volume dramatically slowed since the previous quarter. Availability increased while absorption was negative and the asking rent average decreased slightly.
Years of job growth throughout New York City abruptly ended in 2Q 2020 due to COVID-19. In the period between March 14th and June 20th, 1.33 million initial claims for unemployment insurance were filed in New York City, compared to 89,000 during the same period in 2019.
New York City’s unemployment rate increased from 3.4% in February 2020 to a record-high of 18.2% in May. As an additional economic indicator, the City’s labor force stood at 4.08 million in February 2020 before dropping to 3.66 million (as of May 2020), the smallest labor force since 2001.